Banks - The safest place for your money

sadabbott

When I was little, I was told that the higher the risk, the better the return. Shares, bonds and commodities were the place to put your money to get a good return.

Well banks have outperformed shares for the past ten years and now are we about to see cash under the mattress outperform banks?

If banks start collapsing, will those with practical skills, such as doctors, engineers, etc be the rich ones? Leaving managers, bankers, and other non-professions being the poor?

Is this the start of a new world order?

pizzagirl

sadabbott wrote: »

Well banks have outperformed shares for the past ten years and now are we about to see cash under the mattress outperform banks?

?

Not really. Banks may have collapsed but no saver has lost a penny.

But your other point is valid. I'd love to see a society where people who create things or help people are rewarded appropriately rather than greedy bankers and speculators.

gozomark

sadabbott wrote: »

When I was little, I was told that the higher the risk, the better the return.

what you should have been told was"the higher the risk, the better the return you need to expect to justify the higher rsk"

Stavros_3

gozomark wrote: »

what you should have been told was"the higher the risk, the better the return you need to expect to justify the higher rsk"

Do a google on Nick Leeson. Do a lot of research and speak to a reputable IFA

fortune_pete

Banks have been rescued from their recklessness. They will, as always, get to repeat the process. No doubt new rules will be put in place to rein in future conduct. And the new regulations will, in turn, be gradually removed - so we're not about to see an era of poor bankers.
The rescue plans being seen here, in Europe and the US actually encourage banks to play a high risk strategy as soon as the worst is over.